Customized Financing Solutions

The City of Woodbury has an active Economic Development Authority (EDA) that promotes and facilitates economic development within the city. The EDA considers business and housing development proposals on a case-by-case basis and uses a broad range of competitive financing programs designed to save companies substantial interest expense over the life of a project, while simultaneously improving their return on equity. Below is a sampling of incentive programs that the city has to offer.

Tax Increment Financing

Tax increment financing (TIF) is a planning and financing tool which has been used by local units of government since 1973.Tax increment financing was originally designed by the Minnesota Legislature to replace the federal urban renewal programs of the 1960s, which were gradually cut back and eventually eliminated.

Tax increment financing uses the increase in property taxes resulting from new development to finance qualified public improvement costs related to that development. It is this increase or difference between the current property tax on a parcel of land and the estimated property tax after development that is the tax increment. Other sources of revenues may also be classified as tax increment. Permitted uses of the tax increment generated vary according to the type of tax increment financing and the year during which the tax increment financing district was certified. The three different types of TIF Districts include:

• Economic Development Districts
• Housing Districts
• Redevelopment Districts

Woodbury has established several TIF Districts over the past years. View the city's TIF policy (85 KB).

Woodbury Growth Fund

The City of Woodbury has established a revolving loan fund call the Woodbury Growth Fund. This financing tool could be used to finance equipment as well as real estate. Rates are below market with a $250,000 maximum loan amount. Read more about the Woodbury Growth Fund.

Twin Cities Community Capital Fund

Woodbury is one of 25 cities to offer "gap financing" for building expansion and equipment through the Twin Cities Community Capital Fund (TCCCF), and one of only five cities to qualify at the highest funding level. The TCCCF offers long-term, subordinated, fixed-rate loans in partnership with local lenders.

Other Programs

The city also works with the Minnesota Department of Employment and Economic Development (DEED) to secure financing for businesses. These programs include the Minnesota Investment Fund and the Minnesota Job Skills Partnership Program.